SRS Labs and Coming Home Studios Demonstrate SRS Circle Surround(R) at the Surround 2004 Conference

The Two Companies Also Celebrate Matchbox Twenty's Surround Music Award Nomination for Best Concert Video

SANTA ANA, Calif., Aug. 31 -- SRS Labs, Inc. , a leading provider of innovative audio, voice and semiconductor technology solutions, today announced that the company along with Coming Home Studios ("CHS"), a Los Angeles-based full service television and DVD production and distribution company, are exhibiting at the Surround 2004 Conference at the Renaissance Hotel in Hollywood, Calif., in the Franklin Hills room August 30-Sept 1. SRS Labs will be demonstrating their Circle Surround(R) encoding and decoding technology and highlighting their professional products, and both companies will be celebrating the Surround Music Award nomination of multi-platinum recording sensation Matchbox Twenty for their live DVD "SHOW -- A Night In The Life Of Matchbox Twenty," which was recorded in Circle Surround.

Coming Home Studios is a full service television and DVD production and distribution company that uses cutting edge production methods to provide music fans with a front row seat at the concert. Coming Home Studios has worked with a who's who of platinum artists, including Matchbox Twenty, Rush, Dave Matthews Band, Duran Duran, Godsmack, Usher, Boz Scaggs, Marilyn Manson, The Go-Gos, Etta James and many more.

CS is a breakthrough, patented surround encode/decode format that allows a 5.1 or 6.1 surround mix to be stored or transferred over any two-channel format, including radio and television broadcasting, regular compact discs and the stereo track of a DVD. Listeners playing a CS-encoded DVD over their home theater system that includes a matrix decoder will enjoy the original multichannel mix that the artist and engineers created. Also, any Circle Surround-encoded clip that is broadcast over television or radio, compressed for distribution online, or stored digitally on standard media, such as CDs, DVD-Rs, or digital audio players, will retain the surround sound information. One of the most powerful features of CS technology is that it is 100 percent compatible with all playback environments, from one-speaker mono to two-speaker stereo or multi-speaker surround sound. CS is also widely used by major record labels including Lava records and mega-star recording artists such as Uncle Kracker.

For the automotive markets, the Circle Surround Automotive decoder was developed to meet the increasing demand in the automotive market for multichannel playback. The CS Automotive decoder is a customized version of Circle Surround II, our standard next-generation Circle Surround decoder, that produces the best and most compelling surround audio within the stringent automotive environment. Even with the traditional low speaker locations, limited speaker sizes and non-ideal passenger seating positions; Circle Surround Automotive is able to provide all vehicle occupants an optimal listening experience.

For more information on licensing SRS technology, contact sales@srslabs.com. To hear an online demonstration of SRS technologies, visit www.srslabs.com/Demonstrations.asp.

About Circle Surround(R) and Circle Surround II(R)

Circle Surround ("CS") is a patented and highly versatile multichannel audio encoding and decoding technology capable of supporting a wide range of surround sound creation and playback applications. CS hardware and software encoders can encode up to 6.1 channels of discrete audio for distribution over existing two-channel carriers such as broadcast television, cable and satellite transmission, streaming media over the Internet, CDs, DVDs and VHS tapes. The next generation of Circle Surround is Circle Surround II ("CS II"), a powerful and versatile multichannel decoder capable of delivering up to 6.1 channels of audio from any mono, stereo, matrix-encoded, or Circle Surround-encoded material.

About SRS Labs Inc.

SRS Labs is a recognized leader in the advancement of audio and voice technology. The company works with the world's top manufacturers to provide a richer entertainment experience through patented sound techniques. SRS Labs' technologies can be heard through products ranging from televisions, flat panel displays, DVD players, mobile phones, car audio systems, headphones and notebook and desktop computers. The company also offers hardware and software tools to professionals and consumers for the creation, production and broadcast of content featuring SRS Labs' technologies. SRS Labs' wholly owned subsidiary, ValenceTech, is a Hong Kong-based semiconductor company that designs and sells custom ASICs and standard ICs to leading manufacturers worldwide. Based in Santa Ana, Calif., the company also has licensing representation in Hong Kong, Japan, Europe, and Korea. For more information about SRS Labs, Inc. please visit www.srslabs.com. The information on the aforementioned website is not incorporated by reference into this press release.

Except for historical information contained in this release, statements in this release are forward-looking statements and projections (which include statements concerning plans and objectives of management for future operations) that are based on management's belief, as well as assumptions made by, and information currently available to, management. While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company's goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include the acceptance of new SRS Labs' products and technologies, the impact of competitive products and pricing, the timely development and release of technologies by the Company, general business and economic conditions, especially in Asia, and other factors detailed in the Company's Form 10-K and other periodic reports filed with the SEC. SRS Labs specifically disclaims any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.

   Investor Contact:
   Tami Yanito
   (949) 442-1070 x 3093
   tami@srslabs.com

   Media Contact:
   Jennifer Drescher
   (949) 442-1070 x 5010
   jenniferd@srslabs.com

   Coming Home Studios Contact:
   Daniel E. Catullo III
   (323) 467-6000
   dan@cominghomestudios.com

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